home loan: Do You Need a New Appraisal When You Refinance?
- 08/31/19 07:36 AM
Do You Need a New Appraisal When You Refinance?
It's September of 2019 and interest rates are again approaching historic lows. This means that many homeowners are considering a refinance --- and for good reasons. If there is a hurdle for some, it's the cost and risk of getting an appraisal on their property. What happens if the appraised value doesn't support the loan amount, loan-to-value or the transaction itself? Are these clients then out the money for the appraisal report, typically anywhere from $500 to $1200?
Earlier in the year, we introduced an appraisal tool that allows us to determine, in advance … (14 comments)
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home loan: Can You Still Get a Stated Income Mortgage?
- 08/24/19 03:43 PM
Can You Still Get a Stated Income Mortgage?
Believe it or not, the calls come in. "Do you guys still do stated income loans?" Still? Seriously, a lot has changed in ten years, but in the home lending building perhaps there has not been a more pronounced departure than the Elvis of all mortgages, the stated income loan.
Basically, these creatures roamed the earth and skies during the pre-real-estate-downturn era and allowed a borrower to state what he made in income per month. To state the amount of money he had available for a down payment. And even to state what he did … (19 comments)
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home loan: Do Any Mortgage Lenders Work on the Weekend?
- 08/18/19 08:29 AM
Do Any Mortgage Lenders Work on the Weekend?
The fact of the matter is that a lot of real estate business gets done on Saturdays and Sundays. Prospective buyers go to open houses and buyers' real estate agents often need to structure offers for their clients. Unfortunately, not all banks are open on the weekend even those that may take deposits and cash checks often do not have a home loan professional available to pre-approve a buyer or answer a complicated home loan question in an instant.
I'm different. Even though I'm generally not in the office on the weekend, I can always … (7 comments)
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home loan: How a Refinance Can Drive Down Your Monthly Expenses
- 08/12/19 07:49 AM
How a Refinance Can Drive Down Your Monthly Expenses
While all real estate may be local, so too is it true that one homeowner, confronted with the opportunity to save $250 per month through refinancing, for example, may view that as a significant financial relief while another may feel it's not even worth it to get off the couch to consider going through the hassle of the loan process. As we work into the second half of 2019, there is no mistake that the low rate environment we are enjoying again is providing opportunities for homeowners to refinance. Often in these cases, having an … (11 comments)
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home loan: Should I Refinance into a 15-Year Fixed Rate Mortgage?
- 08/03/19 07:46 AM
Should I Refinance into a 15-Year Fixed Rate Mortgage?
With the Federal Reserve tongue-tied and twisted and an easy trade war time-tripping into the future, we find ourselves the beneficiaries of another very appealing low interest rate environment here in the second half of 2019. This stands to benefit many who have mortgages at higher rates and even some who may not fit that exact bill, but who are focused primarily on reducing the term of their loan and perhaps paying their entire balance off at a faster rate. We are seeing a number of homeowners who are seeking to determine if … (12 comments)
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home loan: Top 10 Tips for Buying a Home in the San Francisco Bay Area
- 07/30/19 08:27 AM
Top 10 Tips for Buying a Home in the San Francisco Bay Area
Buying a home in the highly competitive San Francisco Bay Area real estate market is a daunting task for nearly everyone. Tales of heartache abound --- “everything goes for over asking price,” “we don’t stand a chance against all-cash offers,” “everything we want is out of our price range,” etc. If you only listened to the naysayers, you might not even set foot in the arena. As a lender who has observed the home purchase market, specifically over the last decade (2009 to 2019), I wanted to share my … (4 comments)
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home loan: What is APR on a Mortgage?
- 07/22/19 07:36 AM
What is APR on a Mortgage?
"Can you tell me what your APR is?"
"Sure. Can you tell me what APR is?"
"Uhhhh..."
So this really happened. Many times, in fact. This is your garden variety, otherwise-intelligent consumer trying to shop for a mortgage. This is someone earnestly trying to figure out the best deal on a home loan. And yet, most often, they have absolutely no idea what they are doing when it comes to the annual percentage rate, or APR, on a mortgage. But I don't blame them. The point of this blog is not to make anyone look or feel stupid. In fact, it's … (5 comments)
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home loan: Closing Costs on a Mortgage
- 07/16/19 07:27 AM
Closing Costs on a Mortgage
When a homebuyer, or homeowner looking to refinance, obtains a mortgage, there are always associated costs. Even in the so-called "no cost" loan structures, trust me, you're paying something. When a consumer does the research on what it will cost to get a loan, there are a few ways to categorize and better understand what's being charged. Specific numbers will vary wildly depending on the nature of the transaction, the amount and where the settlement takes place. A key takeaway of this article will be to differentiate between a "cost" and a "settlement charge." They are not … (4 comments)
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home loan: Investment Property Jumbo Mortgage with Low Down Payment
- 07/07/19 09:22 AM
Investment Property Jumbo Mortgage with Low Down Payment
Since I'm in California, and property values where I live and work tend to be on the, shall we say, higher side, residential real estate investors --- those looking to purchase a home of 1- to 4-units to be used as an income-producing property --- can sometimes be limited in their attractive jumbo mortgage options. This is especially true if they are looking to keep their down payment as low as possible. Many potential rental property buyers are told flat out that even a 20% down payment is California dreamin', and that a jumbo … (0 comments)
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home loan: Should I Get a HELOC?
- 07/01/19 07:50 AM
Should I Get a HELOC?
Thankfully, many of our clients are happy with their mortgages. The interest rate, the terms, the peace of mind --- all are satisfactory and there's no motivation to change or refinance. But what happens if there's a need to use the equity in the home to finance a remodeling project, a large purchase or to just have a "safety net?" A home equity line of credit or "HELOC" can be used to meet these purposes, but should you get a HELOC and, if so, how do they work?
What Is a HELOC?
A home equity line of credit, or … (11 comments)
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home loan: What's a Piggyback Mortgage?
- 06/23/19 07:47 AM
What's a Piggyback Mortgage?
As if! As if mortgages weren't complex enough, now you're going to tell me there's such a thing as TWO mortgages stacked on top of each other --- just to buy the same home you could otherwise get with one mortgage? Are you a glutton for punishment?
OK, calm down. You're correct about the part that adding a second, or "piggyback," mortgage might add complexity, but you're not quite right about the fact that our buyer could have just as easily killed the proverbial financing bird with one stone/loan. Often, when we suggest borrower consider secondary financing, aka a piggyback loan, … (15 comments)
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home loan: Jumbo Mortgage with 5% Down Payment
- 06/17/19 07:36 AM
Jumbo Mortgage with 5% Down Payment
You never hear anyone say "Give it 95%!," do you? And, curiously, when it comes to getting a jumbo mortgage, that still holds true --- the vast majority of homebuyers still think it takes a 20% down payment to enter the market. As of 2019, there are 34 metropolitan statistical areas (MSAs) in California that have a maximum conforming loan limit of $484,350. Another handful of counties can only get to a jumbo-conforming limit of around $550,000. So what do these homebuyers do if they have a maximum of a 5% down payment yet need to exceed … (1 comments)
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home loan: What's the Point of Points?
- 06/11/19 05:59 AM
What's the Point of Points?
Let's get right to the point. What point? Points. I don't get it. What's your point? The point is points --- what are they, how do they work and should I pay them when I get a mortgage? There's a lot of confusion about points and when a borrower researches his or her best mortgage options, inevitably there will be an element of points in the debate. So in order to help ourselves find the best terms on any home loan, we need to get this point thing under our belt.
Point One (One Point)
Simply, one point equals … (46 comments)
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home loan: What Is a Debt Service Coverage Ratio Mortgage?
- 06/04/19 07:50 AM
What Is a Debt Service Coverage Ratio Mortgage?
Real estate investors have long turned to private money loans when conventional mortgage lenders have determined that either they, with their multiple property holdings, or the properties they are looking to buy, pose too great a risk. But for its benefits of closing quickly and not involving an intrusive qualifying process based on ability-to-repay (ATR), hard money loans are expensive and most often have terms that require the investor to refinance or pay off the loan in the short term --- not an ideal fit for those who own, or are building, a portfolio … (1 comments)
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home loan: When Is a Good Time to Refinance?
- 05/27/19 08:11 AM
When Is a Good Time to Refinance?
There's that great, old maxim that goes, "There are two kinds of jobs in the world; the kind you shower before and the kind you shower after." And in that spirit, I would offer that there are two kinds of refinances in the world --- the kind you transact because you want to and the kind you pursue because you must. We'll cover both here and we'll talk about when it may be a good time to consider refinancing your home. But first, some basics.
Refinancing your mortgage(s) allows you to change the terms of your … (3 comments)
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home loan: The Lenders, The Dreamers and Me
- 05/13/19 07:33 AM
The Lenders, The Dreamers and Me
Immigration, as a topic, has been in the news a lot lately. Without weighing in politically, at least overtly, this is a matter close to my heart as it's not hard for me to forget that my grandparents fit the classic Ellis Island mold that shaped the lives of countless Italian-Americans. A couple of years ago, I was honored to write a piece for our industry's M Report, and in it, I tried to imagine what it was like for my immigrant grandfather to obtain his first mortgage here in the United States. Just conjuring his … (3 comments)
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home loan: Lock Watch for the Week of 4/29/2019
- 04/28/19 08:06 AM
Lock Watch for the Week of 4/29/2019
Volatility-O-Meter:
FOMC meeting and announcement this week, but no rate change expected. Still, watch the language and watch the employment report on Friday too.
Economicalendar (all times are Pacific):
Mon, 4/29: Personal Income and Outlays (5:30am).
Tues, 4/30: Case-Shiller HPI (6am), Chicago PMI (6:45am), Consumer Confidence and Pending Home Sales (7am).
Weds, 5/1: ADP Employment Report (5:15am), PMI Mfg Index (6:45am), Construction Spending (7am) and FOMC Announcement (11am).
Thurs, 5/2: Jobless Claims and Productivity and Costs (5:30am), Factory Orders (7am). Fed Balance Sheet (1:30pm).
Fri, 5/3: Employment Situation and Int'l Trade in Goods (5:30am), ISM … (1 comments)
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home loan: Having Your OREO and Depleting It Too
- 04/23/19 06:55 AM
Having Your OREO and Depleting It Too
Asset-backed or asset qualifying mortgages are not endangered species around here. Not a week goes by where we don't field an inquiry from a home buyer or homeowner seeking a mortgage but devoid of the typical income qualifying requirements; paystubs, W-2 forms and tax returns that show what they really earn in any year. So using assets to qualify for a mortgage has become a viable alternative for those who have strong credit and who have demonstrated the ability to save and invest. These individuals can often parlay their (liquid) net worth into qualifying power, and … (15 comments)
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home loan: Lock Watch for the Week of 4/22/2019
- 04/20/19 07:44 AM
Lock Watch for the Week of 4/22/2019
Volatility-O-Meter:
And you thought Good Friday was last week...
Economicalendar (all times are Pacific):
Mon, 4/22: Existing Home Sales (7am).
Tues, 4/23: New Home Sales (7am). 2-Yr Note Auction (10am).
Weds, 4/24: 5-Yr Note Auction (10am).
Thurs, 4/25: Jobless Claims and Durable Goods (5:30am), 7-Yr Note Auction (10am). Fed Balance Sheet (1:30pm).
Fri, 4/26: GDP (5:30am), Consumer Sentiment (7am).
10-Year Treasury History
2.58% Market Open
2.56% One Week Ago
2.44% One Month Ago
2.98% One Year Ago
(Need a rate quote for your specific scenario? Click anywhere on this link.)
Hangin' Out at Dino's
If you listen to a "classic rock" … (0 comments)
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home loan: Rental Income from Accessory Units? Hot or Not?
- 04/16/19 07:10 AM
Rental Income from Accessory Units. Hot or Not?
I don't know about where you live, but here in Marin County, accessory dwelling units ("ADU"), also known as accessories, 1+'s, granny units, in-law's, mother-in-law's, etc., are all the rage. When we discuss remodel projects with our clients, adding an accessory is often high on the list. After all, if permitting allows, the thought of having the extra space to accommodate guests, parents or children, short- or long-term renters or maybe just create the proverbial doghouse in marriage under the strain of any/all of the above, can be appealing. But from a mortgage guideline standpoint, … (4 comments)
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Do You Need a New Appraisal When You Refinance?
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